Market analysis for Nov. 6th, 2024

oWelcome back traders. Apologies for a late and abbreviated review today. We had a blast last night, scalping the moves in the futures. It brought back memories of four years ago. We were wishing we could get an election every day but that probably would be a bad thing as we'd never sleep! I stayed up until about midnight scalping then left my positions on...got back up at 2:00 A.M. to adjust them for some more potential and then got back up again at 4:00 A.M. so that's my excuse. We should end up with over $2,000 of profit to show for our effort. One thing you can never say about our trading room is that we don't give you plenty of opportunities to trade! Here's our results for yesterday with the late night election scalping trade still working.

Fututres have pushed us into new bullish territory.

The question now for today is, does this rally continue? Does it fade out today? What does FOMC tomorrow bring? The action continues! All major indices are now firmly above their 50DMA.

Trade docket for today. Busy: /6A, /6C /6J, /MNQ,/NQ scalping continues, /ZN?, CVS, DVN, LRN, LUMA, PLTR, SMCI, UAL, QCOM, ARM, TTWO, LYFT, BYND, SPCE, AMC, 0DTE's.

December S&P 500 E-Mini futures (ESZ24) are trending up +2.24% this morning after Republican Donald Trump won the U.S. presidential election.
Donald Trump was elected the 47th president of the United States on Wednesday, achieving a remarkable political comeback in one of the most divisive contests for the White House in U.S. history. With a victory in Wisconsin, Trump surpassed the 270 electoral votes needed to win the presidency. Along with Wisconsin, Trump secured wins in the other critical battleground states of Pennsylvania, Georgia, and North Carolina. The Republican party also gained control of the U.S. Senate, and made advances in the House of Representatives in its bid to retain control there, heightening the possibility of a so-called “Red Sweep.”
In yesterday’s trading session, Wall Street’s main stock indexes closed in the green. Palantir Technologies (PLTR) soared over +23% and was the top percentage gainer on the S&P 500 after the data analytics firm posted upbeat Q3 results and raised its full-year revenue guidance. Also, GlobalFoundries (GFS) surged more than +14% and was the top percentage gainer on the Nasdaq 100 after the company reported stronger-than-expected Q3 results and offered a solid Q4 forecast. In addition, Cummins (CMI) climbed over +8% after reporting better-than-expected Q3 results. On the bearish side, Celanese Corp. (CE) plummeted more than -26% and was the top percentage loser on the S&P 500 after the company posted downbeat Q3 results and said it would cut its quarterly dividend by 95% starting in the first quarter of 2025. Also, NXP Semiconductors N.V. (NXPI) slumped over -5% after the semiconductor manufacturing and design company provided below-consensus Q4 guidance.
Economic data released on Tuesday showed that the U.S. ISM services index unexpectedly rose to a 2-1/4 year high of 56.0 in October, stronger than expectations of 53.8. At the same time, the U.S. October S&P Global services PMI was revised lower to 55.0 from the 55.3 preliminary reading. In addition, the U.S. trade deficit stood at -$84.40B in September, wider than expectations of -$83.80B and the largest deficit in nearly 2-1/2 years.
The Federal Reserve kicks off its two-day meeting later in the day. Fed officials are widely expected to lower interest rates by a quarter percentage point when their meeting concludes on Thursday as inflation continues to move closer to the 2% target. Investor attention will likely center on Powell’s press conference, where he is anticipated to offer guidance on the Fed’s trajectory for interest rate cuts in the upcoming quarters.
Third-quarter earnings season rolls on, and market participants anticipate new reports from notable companies today, including Qualcomm (QCOM), Arm Holdings (ARM), Gilead Sciences (GILD), MercadoLibre (MELI), CVS Health (CVS), and Take-Two Interactive (TTWO). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +4.3% increase in quarterly earnings for Q3 compared to the previous year, down from +7.9% growth projected in mid-July.
On the economic data front, investors will likely focus on U.S. Crude Oil Inventories data, which is set to be released in a couple of hours. Economists estimate this figure to be 0.300M, compared to last week’s value of -0.515M.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.437%, up +3.43%.

I'll see you all in the trading room. Let's put our Scalps to bed today and lock in some sweet gains! 

No matter who you voted for let's all pray that good decisions are made and prosperity reins.